Three DOL Policy Shifts On Benefits Attys' Radar

Since the start of President Donald Trump's administration in January, the Department of Labor has shifted its approach on various matters concerning employee benefits. This is a brief overview of three key issues currently on the radar of Benefits Attorneys.

Source: Wagnerlawgroup.com, July 2025

The Long-Term Power of Starting Early in a 401k

The power of compounding is a vital advantage for 401k participants when saving for retirement. Compounding refers to the growth generated not just from the principal investment but also from the returns on that investment. To maximize the benefits of compounding, it’s essential to start saving early. By beginning in your twenties, you allow your investments more time to grow, making even smaller early contributions potentially more effective than larger later contributions due to the cumulative effects of compounding.

Source: Savantwealth.com, July 2025

Proprietary Fund Case Against Natixis Dismissed

A federal judge has dismissed a lawsuit that claimed the Natixis defendants allowed underperforming funds to remain in a retirement plan out of self-interest and failed to prudently monitor or remove them. The suit argued that the defendants used an imprudent fund selection process by only adding proprietary funds since 2014. While the judge acknowledged the complexity of the case, they ultimately ruled against the arguments regarding imprudence in fund selection and monitoring.

Source: Psca.org, July 2025

A Review of Our Annual Retirement Plan Fee Benchmarking: Webinar

Each year, the Multnomah Group collects fee data from various recordkeeping providers used by their clients' plans. They analyze this information and create a report that details the fees paid for recordkeeping and benchmark them against peer group ranges. This fee benchmarking webinar addresses the significance of fee benchmarking, highlights key findings from the 2023 data, explains peer group ranges, advises on steps to take if plan expenses exceed these ranges, discusses the advantages of conducting a vendor search, and identifies other ways recordkeepers might profit from your plan.

Source: Multnomahgroup.com, July 2025

The Problem of Organizational Drift for 401k Plan Providers: Commentary

The author expresses a keen interest in business history, especially the reasons behind the failures of certain companies and organizations. He foresaw the downfall of Sears and Blockbuster Video long before it happened. Failures in organizations don't occur overnight; as Red noted in The Shawshank Redemption, it simply requires "pressure and time." At the forefront of these issues is organizational drift, also known as strategic drift. This phenomenon occurs when an organization gradually strays from its original trajectory, often without being aware of the shift. For 401k plan providers, there's an opportunity to learn from the missteps of these unsuccessful providers to avoid making the same mistakes.

Source: Jdsupra.com, July 2025

Arbitration Provision at Issue in Ninth Circuit Appeal of ERISA 401k Suit

The Capital Group Companies Inc. is appealing to the U.S. Ninth Circuit Court to enforce an arbitration provision in its 401k plan, arguing that a lower court was wrong to deny its motion to compel arbitration in a former employee's ERISA lawsuit. The district court rejected the arbitration provision because it allegedly waived statutory rights under ERISA to seek class or collective relief for all plan participants. Capital Group contends that the district court misapplied the effective vindication exemption of the Federal Arbitration Act.

Source: Hallbenefitslaw.com, July 2025

Getting Ahead of the New Roth Catch-up Requirement: Issues to Consider Now

Plan sponsors and recordkeepers were relieved by the postponement of the Roth catch-up contribution requirement under SECURE 2.0 until 2026, as compliance would have added significant complexity to the administration of 401k and 403b plans. This complexity necessitates prior planning and decision-making. Consequently, plan sponsors are encouraged to start addressing key issues related to this upcoming requirement. This article reviews some of those key issues.

Source: Cohenbuckmann.com, July 2025

EBSA Nixes Obsolete Interpretive Bulletins Relevant to Retirement Plan Admin

On June 30, the Department of Labor's Employee Benefits Security Administration announced the removal of certain interpretive bulletins related to the administration of retirement plans, deeming them obsolete and potentially confusing. This action, formalized in a Direct Final Rule, targets specific bulletins under ERISA that the DOL no longer considers necessary due to subsequent guidance and the implications of the 1978 Reorganization Plan No. 4. The DOL's objective is to reduce confusion and complexity in the regulatory framework.

Source: Asppa-net.org, July 2025

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